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TEXAS TAXES: A COMPARISON WITH OTHER STATES
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Abstract
This document is part of an educational series on Texas taxes. State and local taxes in Texas are compared with those of the fifty states and the District of Columbia. Taxes are compared per capita and per 1,000ofpersonalincome.Thetaxesinclude:allstateandlocaltaxes,propertytaxes,salesandgrossreceiptstaxes,personalincometaxes,corporateincometaxesandcorporatefranchisetaxes.Foreachtaxthenationalaverage,median,maximumandminimumaregivenalongwiththecorrespondingtaxforTexasandTexas′sranknationally.Texasstaterevenuecomesprimarilyfromthesalestaxandlocalrevenuefromthepropertytax.Itisoneofonlyfourstateswithneitheracorporatenorapersonalincometax.Forallstateandlocaltaxes,Texasranks35thpercapitaand40thper1,000 of personal income. Despite this relatively low rank among all states, tax reform is a continuing priority issue in Texas. The reason for this may be the heavy reliance on sales and property taxes to support state and local governmental services. While the overall tax burden is relatively low, the burden of these two taxes ranks relatively high and may disadvantage certain industries.Public Economics,